Finance

In Hawaii, what does 'seasoning' mean in the context of mortgage lending?

AA. The adjustment of mortgage rates based on seasonal demand
BB. A period of time that must pass after a major credit event (bankruptcy, foreclosure) before a borrower can qualify for a new mortgage✓ Correct
CC. The process of aging a mortgage on the books of a lender
DD. The time between application and closing

Explanation

Seasoning is the required waiting period after a credit event (such as bankruptcy or foreclosure) before a borrower can qualify for a new mortgage, typically 2-7 years depending on the loan type.

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